Bank of Canada says economy proving resilient
The Bank of Canada kept its key policy rate at 2.25 per cent this week. Bank governor Tiff Macklem said the Canadian economy is proving resilient in the face trade challenges.
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Third quarter annualized GDP grew by 2.6 per cent, much more than expected, and the economy added 181,000 new jobs between September and November.
Likewise, Cindy Simmons of RBC Dominion Securities was cautiously positive when she spoke to the Agricultural Producers Association of Saskatchewan. She said forecasters expect continued but slower growth in 2026.
Growth in 2025 was slow, but Canada appeared to avoid a technical recession. Unemployment mainly affected steel, lumber and the auto sector, and was past its peak. Simmons called inflation “slightly above our comfort zone” but better than in the U.S.
Farm Credit Canada’s view was less optimistic. In economic analysis published on Thursday,
the farm lender said Canada’s Q3 GDP report shows weakening economic fundamentals.
Most of the 2.6 per cent annualized growth last quarter came from collapsing imports,
and importers pulled back in part due to contracting domestic demand.
Weakness is expected to carry in 2026, especially if trade barriers stay in place.
Long-cited glyphosate study retracted on ethics violations
A major study about the safety of glyphosate has been retracted by the journal that published it.
The paper in question circulated heavily in the early 2000s and helped to shape public confidence in glyphosate herbicide.
The journal Regulatory Toxicology and Pharmacology withdrew the study after a review found undisclosed industry involvement, reliance on unpublished data from Monsanto, and omissions of conflicting evidence.
The retraction authors said concerns about ghost-authorship and potential conflicts of interest were enough to warrant the decision.
Bayer, which bought out Monsanto in 2018, argued that its contribution to the paper was not to the level of authorship and was adequately disclosed. It also said modern assessments of the herbicide’s safety consider far more evidence than was available when the report was written.
Health Canada said the retraction doesn’t change its position on the safety of glyphosate. While it referenced the now-discredited study, it also independently evaluated the primary data sources. No further review is expected.
While major regulators have ruled that glyphosate is safe for use on food crops, Bayer has faced many lawsuits that claimed the herbicide caused cancer.
Canadian agricultural groups demand CUSMA stay as-is
Canadian agricultural groups have sent a forceful message to the federal government asking that the CUSMA trade deal remain unchanged.
They asked the federal government to sign the agreement for its original 16-year completion date
without weakening any provisions or adding changes that negatively affect the ag sector.
CUSMA is up for review next year.
Earlier this year, a slew of American groups signed a similar letter in support of free trade between the countries. They highlighted CUSMA’s role in building a stable, integrated North American agricultural market.
Canadian Federation of Agriculture President Keith Currie said the countries are aligned through a shared language, goals and collaborative relationship-building to improve and strengthen the sector.
He said he wants Canadian farmers to get every advantage but not at the expense of American farmers or the relationship between the two countries.
